Have you tried to deposit cash into a bank account that is not yours? Have you been asked for ID or "are you a signor on this account? Couldn't make the deposit, could you? Well here is why.
Chase and other banks are sighting the Bank Secrecy Act for their changes to cash deposits. Per the FDIC.gov regulation page about the Bank Secrecy Act, "The Financial Recordkeeping and Reporting of Currency and Foreign Transactions Act of 1970 (31 U.S.C. 5311 et seq.) is referred to as the Bank Secrecy Act (BSA). The purpose of the BSA is to require United States (U.S.) financial institutions to maintain appropriate records and file certain reports involving currency transactions and a financial institution’s customer relationships."
The initial purpose of this Act was as stated by the Act itself, "The implementing regulations under the BSA were originally intended to aid investigations into an array of criminal activities, from income tax evasion to money laundering. In recent years, the reports and records prescribed by the BSA have also been utilized as tools for investigating individuals suspected of engaging in illegal drug and terrorist financing activities."
Under Section 326 of the USA PATRIOT Act, which is implemented by 31 CFR 103.121, requires banks, savings associations, credit unions, and certain non-federally regulated banks to implement a written Customer Identification Program (CIP) appropriate for its size and type of business. Although this provision pertained to opening a new account, it doesn't limit how the banks use this requirement. Under the Bank Secrecy Act banks are encouraged to develop policies in accordance to this act, the USA Patriot Act and the Anti-Money Laundering Compliance program.
An article written by Matt Egan for FoxBusiness.com, addresses JP Morgan Chase's change in their cash deposit policy. It also mentions other attacks on the banking industry that has fueled the necessity of banking deposit changes. Review his article here.